Fossil’s Shares Decline After Earnings Forecast Misses Estimates

Fossil Group Inc. (FOSL), the maker of watches and other accessories, tumbled as much as 7.6 percent in late trading after its second-quarter forecast trailed analysts’ estimates.

Earnings will be 90 cents to 97 cents a share in the period, the Richardson, Texas-based company said today in a statement. Analysts had projected $1.16 on average, according to data compiled by Bloomberg. The company predicted sales growth of 8 percent to 9.5 percent, just short of the 10 percent average estimate.

The forecast raised concerns that Fossil’s growth is ebbing following a 14 percent sales gain last quarter. While the company cited “strong performance” in its watch business, sales of leather products are suffering. The company also faces a slowdown in U.S. mall traffic.

Fossil shares dropped as low as $102.95 in extended trading after closing at $111.45 in New York. The stock has fallen 7.1 percent this year.

To contact the reporter on this story: Nick Turner in New York at nturner7@bloomberg.net

To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net Ben Livesey

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.